One of the main drivers of Australia’s economic growth was natural resources. Now with their largest trading partner China signalling slowing growth the RBA has issues a statement that they are ready to act if needed.
Martin Ferguson, the Australian Resources Minister said an interview: “the resources boom is over.”
From Bloomberg:
Reserve Bank of Australia Governor Glenn Stevens said policy makers are prepared to respond in the event the economy slows, predicting the nation’s mining investment boom has at least another year before easing.
“The peak of the resource investment boom as a share of gross domestic product, the highest such peak in at least a century, will occur within the next year or two,†Stevens said today in semiannual testimony at parliament in Canberra. The RBA is ready to act if growth veers off from the outlook, he said.
